BERLIN, April 7 (Reuters) - German chancellor-in-waiting Friedrich Merz warned that international stock and bond markets could deteriorate further following the announcement of U.S. President Donald Trump's sweeping tariff regime, in a statement to Reuters on Monday.

"The situation on the international equity and bond markets is dramatic and threatens to deteriorate further. It is therefore more urgent than ever for Germany to restore its international competitiveness as quickly as possible," Merz said in an emailed statement.

"This issue must now be at the centre of the coalition negotiations," he added of his conservative bloc's talks to form a government with the Social Democrats, repeating his party's calls for tax cuts, a reduction in red tape and lower energy prices.

(Reporting by Andreas Rinke, Writing by Rachel More, Editing by Miranda Murray)

((rachel.more@thomsonreuters.com;))